"While the war continues, the commerce of America will be inconsiderable; but on the restoration of peace it will soon become very valuable and extensive. So great is the extent of country in North America yet to be cultivated, and so inviting to settlers, that labor will very long remain too dear to admit of considerable manufactures. Reason and experience tell us, that when the poor have it in their power to gain affluence by tilling the earth, they will refuse the scanty earnings which manufacturers may offer them. From this circumstance it is evident, that the exports from America will consist of raw materials, which other nations will be able to manufacture for them at a cheaper rate than they can themselves. To those who consider the future and progressive population of that country, the demands it will have for the manufactures and productions of Europe, as well to satisfy their wants, as to gratify their luxury, will appear immense, and far more than any one kingdom in it can supply. Instead of paying money for fish and many other articles as heretofore, Spain will then have an opportunity of obtaining them in exchange for her cloths, silks, wines, and fruits; notwithstanding which, it is proper to observe, that the commerce of the American States will forever procure them such _actual wealth_, as to enable them punctually to repay whatever sums they may borrow. _How far it may be convenient for these States to furnish Ships of War, Timber, and other Articles for the King's Arsenals, without Delay, and, if in their Power, on what Terms?_ "I am much at a loss to determine at present, and therefore will by no means give your Excellency my conjectures for intelligence. "It is certain, that in ordinary times, America can build ships as good, and cheaper than any other people, because the materials cost them less. The ships of war now in her service, as to strength and construction, are not exceeded by any on the ocean. On this subject I will write to America for information, and give your Excellency the earliest notice of it. Naval stores, and particularly masts and spars, may certainly be had there, and of the best quality, and I doubt not but that the Americans would carry them to the Havana or New Orleans, though I suspect, their being in a manner destitute of proper convoys for the European trade, would render them backward in bringing them to Spain, on terms equal to the risk of capture, on the one hand, and the expectations of purchasers on the other. II. THE MILITARY STATE OF NORTH AMERICA. _The Number and Strength of the American Troops, their present Situation, and Ability to oppose the Enemy, especially in Georgia and Carolina._